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What if prebuilt and marketplace commissions software is not enough
What if Prebuilt and Marketplace Commissions Software is Not Enough

Table Of Contents

Incentive Compensation Management (ICM) and Sales Performance Management (SPM) are critical tools for driving sales performance and efficiency. However, it’s worth exploring whether prebuilt solutions truly meet the often comprehensive needs of organizations and their sales departments. Specifically, we’ll look into the integration capabilities with CRM platforms like Salesforce.

The appeal of prebuilt and marketplace solutions

Prebuilt and marketplace commissions software solutions are attractive due to their ease of integration with CRM platforms like Salesforce, quick deployment, and out-of-the-box functionality. These solutions promise a seamless experience by leveraging native integration, simplifying data synchronization, and streamlining the process of calculating commissions directly within the sales reps’ environment.

Popular marketplaces offer features designed to meet sales organizations’ basic needs. This makes them an appealing choice for businesses looking for comparatively straightforward implementations.

Limitations of prebuilt and marketplace solutions

Prebuilt and marketplace commissions software solutions have notable limitations despite their initial appeal. 

Lack of customization, automation, and sandbox environment

One major issue is the lack of customization and flexibility. These solutions often fail to accommodate complex or unique commission structures that many organizations require. Additionally, they may not scale effectively as a business grows, leading to significant challenges in managing increasing data volumes and evolving compensation plans.

Prebuild and marketplace solutions often lack full automation. Many tasks, such as data uploads and outbound data pushes, must be done by hand. This increases the administrative burden on sales operations teams and heightens the risk of human error. 

Also, basic integrations with CRM systems like Salesforce are generally supported. But, automating data flows between different systems, such as ERP and HR, might pose a challenge. This leads to fragmented data and slow processing.

Another shortfall of such solutions is the absence of a sandbox environment. All changes must be made directly in production, posing risks and complicating proper testing and scenario planning. Furthermore, these solutions might lack advanced SPM functionalities such as territory planning, quota planning, commission expense forecasting, advanced reporting, and analytics. These features are essential for comprehensive sales performance management and are often missing from the prebuilt solution.

The importance of advanced functionality

Advanced ICM and SPM functionalities extend far beyond basic commission calculations. 

Effective sales performance management requires robust tools for territory planning, quota setting, and expense forecasting. Advanced reporting and analytics are crucial for gaining insights into sales performance, identifying trends, and making data-driven decisions. Organizations may struggle to optimize their sales strategies and drive growth without these capabilities.

Unlike prebuilt solutions that often lock data sources upon initial connection, advanced ICM/SPM platforms allow for easy modification and updating of data sources. This flexibility is particularly beneficial when organizations transition between environments, such as moving from a testing environment to production or updating their data sources due to system upgrades or migrations.

Evaluating your organization’s needs

Choosing the right ICM and SPM solution begins with a comprehensive needs assessment. Organizations must identify specific requirements and pain points not addressed by prebuilt solutions. This involves considering both current needs and future growth plans. 

Scalability is crucial; a solution that works today might not suffice as the organization expands and its needs become more complex.

Alternatives to prebuilt and marketplace solutions

Independent vendors offer robust, customizable ICM and SPM platforms that can seamlessly integrate with CRMs like Salesforce. These solutions provide greater flexibility, advanced functionalities, and better support than prebuilt options. 

Vendors like SAP, Varicent, Xactly, and CaptivateIQ offer extensive integration capabilities and can embed their applications within the Salesforce environment, providing a cohesive user experience.

These platforms handle commission calculations and offer advanced SPM features. They support multiple calendars, corporate currencies, and admin types, ensuring organizations can tailor the platform to their needs. Additionally, they automate manual uploads, and outbound data pushes, streamlining processes and reducing administrative burdens.

Conclusion

While prebuild and marketplace ICM solutions boast their native integration claims, it is crucial to evaluate whether they truly meet your organization’s comprehensive needs. Alternative solutions from independent vendors can provide greater flexibility, advanced functionalities, and better support, ensuring that your ICM and SPM systems can scale and adapt as your business grows. Organizations should strive to opt for the best solution that aligns with your requirements and long-term goals.


We’ll be more than happy to help you define these goals, elevate your sales compensation strategy, ensure fairness, and drive performance.

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Grzegorz Struś

GRZEGORZ STRUŚ

Member of the Board, COO
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